By Micah Maidenberg

TC Energy Corp. said Wednesday it is suspending activities related to the Keystone XL pipeline as it expects the incoming Biden administration to revoke a permit allowing the project and warned it may cut the value of the development.

President-elect Joe Biden plans to revoke a presidential permit the company needs to move the pipeline development forward, according to a statement about planned executive actions for his first day in office. Mr. Biden is being inaugurated as president today.

That expected move from Mr. Biden would "overturn an unprecedented, comprehensive regulatory process that lasted more than a decade," TC Energy said in a statement. It also said such an order would result in job cuts.

The Canadian company said it would cease capitalizing costs related to the development, and "evaluate the carrying value of its investment in the pipeline, net of project recoveries."

That process could result in TC Energy recording a large, mostly non-cash after-tax charge to earnings for the first quarter, the company said. It also said it would shift financing plans for the project as it wouldn't be able to issue so-called hybrid securities or common shares through a dividend-reinvestment program to partially fund the pipeline.

The Keystone XL pipeline would stretch from parts of Alberta and Saskatchewan in Canada to Nebraska. It has faced opposition, including from environmental groups and indigenous communities.

Write to Micah Maidenberg at micah.maidenberg@wsj.com

(END) Dow Jones Newswires

01-20-21 0956ET